Capital requirements

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Capital requirements

Financing required for the operation of a business, composed of long-term and working capital plus fixed assets.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Capital Requirements

In banking regulation, the amount of money a bank must have available to cover withdrawals, closed accounts, and other account-related expenses. While each jurisdiction computes capital requirements differently, Basel II provides a framework many countries follow; it describes capital requirements as a percentage of a bank's risk-weighted assets. Capital requirements are important for bank solvency, and, in difficult times, reduce the pressure for bank runs.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The regulator is to apply an additional AUD250m capital requirement to Allianz Australia Ltd.
"We feel, together with the PIRA, that a P900 million capital requirement should be kept and not further increased to P1.3 billion," Loozekoot said on the sidelines of PLIA's 69th Anniversary celebration on Tuesday night.
Less than a year before the deadline, the Insurance Commission disclosed yesterday that many non-life insurers remain way below the government's minimum capital requirement.
New Delhi: The government is expected to infuse about Rs 10,000 crore within a few days in some state-owned lenders including PNB, Corporation Bank and Central Bank of India, to help them meet regulatory capital requirement.
Under FSRA's current rules, an authorised firm that manages a collective investment fund is subject to a capital requirement that is either determined on a base capital requirement (BCR) of $250,000 or an expenditure based capital minimum (EBCM) if higher than the BCR.
* The capital requirement to cover insurance liabilities has increased substantially under the risk-based capital regime of Solvency II.
Islamabad -- The Securities and Exchange Commission of Pakistan (SECP), with the approval of its Policy Board, has increased the minimum paid up capital requirement for insurance companies.
Based on 2013 results as well as the stress tests, most insurers fulfill the so-called solvency capital requirement, the Dutch central bank said in a statement yesterday.
The FSC will replace the NCR rules with the 'minimum capital requirement', which includes regulatory capital requirement, capital requirement for client asset management, and capital requirement for proprietary investments.
They set the initial capital requirement. They can intervene to check banks' risk-taking.
British capital requirement rules don't apply to resident foreign bank branches located in-country but with headquarters abroad.

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